Southwest Florida Title Insurance & Real Estate Blog -

Short Sale Process…Just How Long Does it Take?

Posted by Jillian Dohack On April 17

Short sales have been known for taking a long time to close!

How long is this short sale gonna take?

It was not uncommon in the past to see a short sale take sometimes a year to close, causing overwhelming stress to all parties, especially to the seller.

So why do short sales take so long? Most often we can blame the banks for the delay. However, that complaint does not always apply to Short Sales in 2013.

Many of the lenders and investors have updated their systems, buyers are still interested in buying, and incentives to short sell for both banks and sellers are still viable.

So the question many will ask is…

How long does a short sale take?

One of the biggest setbacks when working on a short sale is the lack of homeowner motivation. Here at Winged Foot Title, we pride ourselves in setting expectations from the beginning with all of our clients.

A short sale is a great deal for the homeowners, but it will require about 45-120 days of effort to get the transaction done, depending on the lender.

Agents who have experience with short sales will know this. Homeowners who delay in submitting requested documents are the ones who end up prolonging the deal longer than it should and/or losing their home to foreclosure.

The lack of motivation on the homeowner’s part will diminish the motivation of the other parties.

Who are these other parties involved on a short sale?

The lenders and the buyers. Lenders will always need accurate documents in a timely fashion. Documents have an expiration date. They will constantly ask you to resubmit your pay-stubs and bank statements as they become outdated.

It is very common that a file will be closed due to a lack of recent requested documents from the seller.  There is also the possibility of having two liens. This means you will have a separate set of documents to submit to the second lender.

They can be challenging to work with because they receive a much smaller payoff. If you’re dealing with junior lean issues in your short sale transaction, the following video may help you.

In the past, the buyers were one of the most difficult parties to hold on to in a short sale. It is much easier to work with buyers now as the timelines on short sales are quicker and because of the lower inventory. The listing agent plays a valuable role in keeping the buyers interested.

Communication is key in short sales.

At Winged Foot Title, we update the listing agents on a weekly basis as well as provide a web portal to view their files 24 hours a day. We ask that they, in turn, share the progress with the Buyer’s agent to keep everyone informed.

It is our goal at Winged Foot Title to make this process as painless and easy for all parties. By setting the proper expectations and receiving the commitment from all parties it can be a much smoother process for all.

If you have questions on a short sale, contact us at 239-985-4142 or visit the learning section of our website.

Jillian

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.